Former Gallatin, Tenn.-based Comprehensive Pain Specialists CEO John Davis was found guilty of participating in a $4 million illegal kickback scheme, according to the Department of Justice.
1. Mr. Davis was convicted of one count of conspiracy to defraud the federal government and violating the anti-kickback statute, as well as seven counts of violating the anti-kickback statute, after a seven-day trial in Nashville, Tenn. His sentencing is scheduled for later this year.
2. Mr. Davis was accused of improperly encouraging CPS providers to refer Medicare durable medical equipment orders to CCC Medical. Employees who referred DME orders to CCC Medical received bonuses from CPS funds, and Mr. Davis received 60 percent of the profit from those referrals.
3. Additionally, Mr. Davis allegedly operated a shell company called ProMed Solutions and registered it in his wife's name, accepting more than $770,000 in illegal kickbacks through the entity.
4. Mr. Davis and his co-conspirator, Brenda Montgomery of CCC Medical, wrongfully collected upwards of $2.4 million in Medicare payments, federal prosecutors said. In January, Ms. Montgomery pleaded guilty to the same eight counts listed in Mr. Davis' conviction. Her sentencing is scheduled for May 3.